One of the very first differences between men and women that I recognized as a child when my parents would get together with their friends is that women would take about their lives and the men would talk about politics and money and business. And it seemed to stand fast as a rule of thumb no matter what part of Jamaica we were living in at the time.
As a newlywed wife, and a young Attorney I have come to the realization that I have a whole lot to learn about money, and I have a short time to learn it in. I am not going to bore you by complaining about the economy and so forth but I feel like it's important to share what I have learnt about money and my attitude towards it and what has been working for me, especially as a woman.
I need a legitimate, tangible reason to save and a deadline for it: Saving for a 'rainy day' didn't mean squat to me. Tell me when that rainy day is coming and how much it's gonna cost me and I'll save for it. Investments I cannot go online and watch or call in and check on? No sah! I want to see my money doing what you say it's doing! This attitude meant that my savings accounts were low and my spending was high. Bad formula for grown-up spending.
When I got my first permanent job, I was pounced on by agents from several institutions telling me about ways to put my money away for the future and taking care of my parents and future children and marriage and I made some mistakes by choosing options that didn't satisfy me but through it I learned what did work and why. This is the guide I now use to inform me how I want to save and invest and hopefully, it will be of some use to you:
As a newlywed wife, and a young Attorney I have come to the realization that I have a whole lot to learn about money, and I have a short time to learn it in. I am not going to bore you by complaining about the economy and so forth but I feel like it's important to share what I have learnt about money and my attitude towards it and what has been working for me, especially as a woman.
I need a legitimate, tangible reason to save and a deadline for it: Saving for a 'rainy day' didn't mean squat to me. Tell me when that rainy day is coming and how much it's gonna cost me and I'll save for it. Investments I cannot go online and watch or call in and check on? No sah! I want to see my money doing what you say it's doing! This attitude meant that my savings accounts were low and my spending was high. Bad formula for grown-up spending.
When I got my first permanent job, I was pounced on by agents from several institutions telling me about ways to put my money away for the future and taking care of my parents and future children and marriage and I made some mistakes by choosing options that didn't satisfy me but through it I learned what did work and why. This is the guide I now use to inform me how I want to save and invest and hopefully, it will be of some use to you:
- Lie to yourself - as much as I hate to admit it, you do have to put money away and not touch it at all for the 'future' however darn elusive that may sound. Get a pension - and get it on a standing order so that it comes out before you notice it and then lie to your self that your pay check is actually the amount remaining. Make sure that it's something you can track though or else you'll feel like its a waste.
- Wishlist it - set a spending ceiling for yourself for each day/week/month depending on how often you find yourself tempted - if you see something you want that is above that ceiling then put it on your wishlist. I have a wishlist on my phone and whenever I see something I want I type it in and leave it. Do not take a picture of it though, you don't wanna trick yourself into liking it more than you do. At the end of the week/month/year look at the wishlist and prioritize and only get one or two things
- Keep it tight - Have your spending account separate from the account your salary goes into. Look at your mandatory expenses for the month and transfer that into your spending account with a little to spare. In an emergency you can always run to the ATM or use a credit card. And emergencies are just that - few and far between and not apart of everyday, normal life so don't panic, k?
- Easy is fun - short term goals are easy. Break up long term goals into short term goals so they are easier to meet. For example if you want to save $100,000 in a year, then go for 2 or 3 extreme saving periods and take breaks in between. The breaks will allow you to relax and enjoy life and the extreme/super time will not seem so torturous because they will be for a short time
- Women do Know best : women generally are not risk takers and are very observant. This should not stop us from going in on investments. Look at your options and choose a group of low-risk investments and investigate them and track their progress. Interested in stocks? Look at the Junior Stock Exchange Market; interested in bonds? Look at some Government Bonds. Don't want anything that you have to watch for? Saving on an insurance policy short term is a good idea as well. My rule of thumb is I do not invest any amount that I don't have to spare after I save and pay for mandatory expenses and tithe. And if you invest and make a profit, pull out your principal and invest the profit only. If you are a chicken like me or are unsure of the viability, only re-invest a third of the the profit and tuck away the 2/3rds you made. And for heaven's sake stay away from investments that aren't done with regulated financial institutions.
I would say you need a budget but those things depress me and when I'm depressed i spend more. So I'm gonna say try it out and see how it makes you feel, and if it works for you more power to you!
If you have any questions at all, leave a comment and I will respond. I will be doing a post on how I saved good money towards my wedding over on my other blog that I will be introducing to you guys soon. When the post goes up I will link it here.
In the meantime. here are some sites I enjoy for smart money advice -
Till later,
Jane
